Q2: MeCure Industries reports 634% increase in PBT

MeCure Industries Plc in its unaudited financial results for the second quarter ended June 30, 2025, has reported Profit Before Tax (PBT) of N3.093 billion, representing an impressive 634 percent year-on-year (YoY) growth compared to Q2 2024.

This strong second-quarter performance pushed H1 2025 pre-tax profit to N3.903 billion, marking a 192 percent YoY increase and already 18 percent higher than the company’s full-year 2024 pre-tax profit.

The financials as released to the Nigerian Exchange (NGX) showed that the impressive bottom-line growth in Q2 was largely driven by a sharp increase in revenue.

Q2 2025 revenue surged to N23.97 billion, nearly doubling Q1 figures, and pushing H1 revenue to N37 billion—almost matching MeCure’s total revenue for the whole of 2024.

This revenue expansion was largely driven by robust demand for acute care and OTC (over-the-counter) products, which continued to account for the bulk of the company’s revenue.

Another contributing factor to the strong profit was the slower growth in the cost of sales relative to revenue:

While revenue rose 165 percent YoY, cost of sales increased by 159 percent to N15.55 billion.

This helped gross profit climb to N8.32 billion, translating to a gross margin of 35 percent.

Despite higher overheads in Q2 2025, the company showed better cost discipline, as Overheads consumed just 38 percent of gross profit in Q2 2025, compared to 61 percent in Q2 2024.

This resulted in a 329 percent YoY increase in operating profit to N5.17 billion, lifting the operating margin to 21 percent—a significant improvement from the prior year.

Finance costs surged by 166 percent to N2.07 billion, driven by increased borrowings.

However, the improved operating performance led to a better interest coverage ratio of 2.49x, up from 1.59x in Q1 2024, meaning the company is more capable of meeting its debt obligations from operating earnings.

Total assets of the company rose by 23 percent in six months to N67.5 billion, reflecting expansion efforts.

However, this growth was largely debt-funded, with total borrowings up to N46.1 billion, now accounting for 68 percent of the balance sheet size.

Consequently, the gearing ratio (debt-to-equity) has increased to 73 percent, raising flags about leverage levels despite rising profitability.

Shareholders’ funds stood at N16.09 billion, representing just 24 percent of the balance sheet.

MeCure Industries’ Q2 2025 performance marks a significant turnaround—driven by booming sales in acute and OTC segments, improved cost efficiency, and stronger gross and operating margins.

ALSO READ TOP STORIES FROM NIGERIAN TRIBUNE